Abstract
China is in the process of rapid urbanization and rapid economic development. The demand for infrastructure construction is getting higher and higher, but government funds are limited and cannot meet its needs. With the decline of government investment in the construction of public infrastructure, and the role of private capital enterprises in the construction of public infrastructure has begun to play an increasingly important role, and the continuous development of marketization of investment and financing models, a new financing model has been introduced—Public-Private-Partnership (PPP) model, that is, the cooperation model between public government departments and private enterprises. At the present stage of the development of China’s PPP model, there are many problems: inadequate legal systems, inadequate supervision and management, insufficient understanding of the PPP model in various regions, inadequate risk taking and benefit distribution, and large government credit risks. In view of this, we should start to improve the legal and regulatory system related to the PPP model, establish a sound supervision and management mechanism, establish a specialized PPP management agency, establish a reasonable risk sharing and benefit sharing mechanism, and establish an information sharing platform. Therefore, this article starts from the deep meaning of the PPP model, the current status of development in China, the problems that arise, and better solutions to study it in depth.
Highlights
China is in the process of rapid urbanization and rapid economic development
This article starts from the deep meaning of the PPP model, the current status of development in China, the problems that arise, and better solutions to study it in depth
The connotation of the PPP of the Asian Development Bank in 2011 refers to the way to link the alliance between the public sector and the private sector for the purpose of carrying out infrastructure construction to provide public goods and services (Jianqiang Sun & Hao Shen, 2013; Shasha Shi & Zhibing Chang, 2013)
Summary
Franchise contracts are mainly based on the combination of management and operations that are mostly private capital expenditures, such as BROT, RLT and ROT, etc.; the third category is an undeveloped project contract, which refers to the construction and operation of a new project by a private institution or public-private partnership during a specific contract period, which will be replaced by the original private or public-private partnership after the contract period Transfer of ownership to the public sector At present, such models include BOO, BLT and BOT; the fourth type is the contract formed by the private sector in the form of divestiture of all or part of assets in the process of publicly promulgating or stipulating privatization projects and auctions of state-owned assets. The government’s annual investment proportion in PPP projects has increased year by year, and the total investment has increased year by year
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